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SAP MM-Tutorials

SAP MM - Enterprise structure.



    • Client is the highest hierarchical level in SAP system
    • Client represents a corporate group in SAP Enterprise structure
    • Client is identified in the system by 3- digit numeric code ( 100 )
    • Data maintained at Client level is valid across all other organisational levels

Company Code

    • Company code is smallest organisational unit within the client
    • Producing its own balance sheets and Profit/loss statements
    • Several company codes can be set up within the client
    • Company code is defined as 4-digit Alpha numeric key ( SAP1)


    • Plant is an organisational unit within the logistics and represents
      • Production facility as a plant
      • Distribution center as a plant
      • Sales office be as a plant
      • Head quarters as a plant
      • Service center as a plant
    • Plant is recommended to use as valuation area for Material valuation
    • Plant is defined as 4 - digit Alpha Numeric key in the SAP system ( PL01)

Storage Location

    • Storage Location is the lowest organisational level in MM and it helps to differentiate the stocks
    • Inventory management is carried out on quantity basis at this level
    • Physical inventory is also done at this level
    • Defined as 4 digit alpha numeric key in the SAP system ( SL01)

Purchasing Organisation

    • Purchasing organisation procures materials and services based on the requirements
    • Purchasing organisation negotiates terms and conditions with the vendor
    • Purchasing responsibility is on the head of purchasing organisation
    • Defined as 4 digit numeric key in the system

Purchasing group

    • Purchasing group is nothing but a Buyer or Purchaser
    • Responsible for certain type of material or service procurement
    • Deals with the vendor by monitoring the purchasing activities
    • Defined as 3 - digit alpha numeric key in the system